The Cafeteria Plan

Benefits are a big deal when trying to decide what company you want to work for, salary is the most important benefit but you should consider other benefits also. Some companies have a benefits package called the cafeteria plan, this plan allows employees to pick from a group of benefits such as, medical, accident, disability, vision, dental and group term life insurance. There are advantages and disadvantages of a cafeteria plan for both the employer …

…more qualified nontaxable benefits. Cafeteria plans give employees the freedom to construct their own benefits program to fit individual or family circumstances. Reason to consider cafeteria plans include: They give employees choices from among a wide variety of nontaxable employee's benefits. Employees can choose or reject benefits as needed. As a result, resources are better used. They give quality employees incentive to stay. They give the employer a positive differentiating factor when recruiting new employees.